'Why don't all Property Casualty agencies receive at least 20% of their commission income from Life, Health, and employee benefits?' This article will show you why this potential revenue source remains untapped by so many firms, and what to do about it.
Your files contain a treasure chest of new-income possibilities. Of course, George Nordhaus has been saying this for years. So the even bigger question is, 'Why don't all Property Casualty agencies receive at least 20% of their commission income from Life, Health, and employee benefits?' Because this question has bothered me for years, I decided to get my Life and Health license and find out more about these products. I also wanted to learn why this potential revenue source remains untapped by so many firms.
I attended a crash course in Life taught over two weekends. This course opened my eyes to the immense amount of information possessed by a good Life and Health producer. This is not a part-time and 'Oh, by the way, do you need Life insurance?' undertaking. A vast amount of knowledge is required. To the traditional Property and Casualty producer, most of the information seems to be a foreign language. (Personally, I find few similarities between these two segments of the insurance industry.)
At this point, I reaffirmed a conclusion that I have expounded on in the past: This is a job for a professional. So why have most agencies failed to recognize this fact? To the contrary, I believe that many do recognize it. However, they have postponed recruiting the right type of professional until next year.
Well folks, next year is now. The availability of Life products boggles the mind. For an idea of how much activity is occurring in this field of insurance, go on the Internet and locate your own Life insurance quote.
So why would people buy Life insurance on the Internet? It's easy, and their insurance agent has probably missed an opportunity to advise them of the need for Life. But if so many people will buy Life insurance from the Internet, why should a Property/Casualty agency enter the arena? Life insurance is more than just buying a Life insurance policy — it's a serious undertaking of personal financial protection.
To start tapping into to this potential revenue stream, an agency owner must leapfrog the traditional approach to Life and move to high-end products and estate planning. This is where the future lies and where the Life agent professional is vital to the client and irreplaceable by the Internet.
Now that it's time to find a Life agent, what type of professional are we searching for? The first step is to remove your Property/Casualty hat. The same qualities and abilities you value in a Property/Casualty agent will rarely fit a successful Life agent. From here, create a profile containing the characteristics of the ideal candidate. Add tenacity and a great sense of self worth to this profile.
Start your search with talented first- or second-year Life agents, who will most likely have experience with a direct-writing firm, and entice them into your agency. The best time to recruit them is just before they become successful, because you probably won't be able to afford them later. If this route isn't available, a bright and eager financial type would be my next choice. After all, this professional is going to be protecting the financial future of the individual customer; just an insurance license won't do.
Let's say you have located solid candidates. Give them an extensive interview and test them. They should demonstrate the skills necessary to be a successful Life producer. They must be ego-driven, energetic, and self-starting, because they might not receive much direction from you (unless you come from the same background).
Provide your Life agents with an attractive compensation package before anyone else muscles into your territory.
Value your Life business as an integral part of your agency's ongoing success. Life insurance must be a priority to you before the rest of the agency shares your commitment. Your pledge to making the Life segment of your agency successful is absolutely necessary.
I have witnessed the frustration many agency owners undergo trying to establish a Life business. I have also observed agency owners who have succeeded in this undertaking. Getting there is worth the effort.